Investors Cheer 121% Profit Growth, Tilaknagar Shares Up 8%

Tilaknagar Industries , a prominent player in the Indian liquor industry , witnessed a robust 8.4% surge in its share price on August 12, 2025, reaching a high of ₹511 during early trading. This impressive rally was triggered by the company’s stellar performance in the June quarter (Q1 FY26), where it reported a staggering 121.25% year-on-year increase in net profit, climbing to ₹88.5 crore from ₹40 crore in the same period last year. The strong financial results, coupled with strategic expansions, have fueled investor optimism , driving the stock to deliver over 106% returns in the past year.

Stellar Financial Performance

Tilaknagar Industries showcased remarkable growth across key financial metrics in Q1 FY26. The company’s revenue surged by 30.7% to ₹409 crore, up from ₹313 crore in the corresponding quarter of the previous year. This growth was underpinned by strong demand in the Indian-Made Foreign Liquor (IMFL) segment, particularly in its flagship brandy offerings. The company’s operating profit (EBITDA) also saw a significant jump of 89%, reaching ₹94.5 crore compared to ₹50 crore in Q1 FY25. This was accompanied by a 700-basis-point improvement in EBITDA margin, which expanded to 23.1% from 16% a year ago, reflecting enhanced operational efficiency and cost management.

Strategic Expansion and Capacity Boost

Adding to the positive sentiment, Tilaknagar Industries’ board approved a ₹25 crore capital expenditure plan for its wholly-owned subsidiary, Prag Distillery (P) Ltd. This investment will significantly expand the subsidiary’s bottling capacity from 6 lakh cases per year to 36 lakh cases annually, a six-fold increase. The project, expected to be completed within the next 12 months, will enable the company to meet growing demand and strengthen its market position. With Prag Distillery currently operating at 100% capacity, this expansion is a strategic move to capitalize on the rising consumption of IMFL in India.

Foray into the Whisky Segment

In a significant development, Tilaknagar Industries recently announced the acquisition of the iconic Imperial Blue whisky brand from Pernod Ricard India for an enterprise value of ₹4,150 crore. This acquisition marks the company’s entry into the whisky segment, one of the largest categories in the IMFL market , complementing its strong presence in the brandy segment. This strategic move positions Tilaknagar as a formidable player in both brandy and whisky, enhancing its portfolio and market reach.

Stock Performance and Market Outlook

On August 12, 2025, Tilaknagar Industries’ shares were trading at ₹498.55 by 1:45 PM, reflecting a 5.56% gain for the day. The stock has been a standout performer, delivering a 19% return in 2025 so far and an impressive 106.95% return over the past year, making it a favorite among investors. The company’s focus on debt reduction—slashing gross debt from ₹1,200 crore in March 2019 to ₹188 crore by September 2023—further underscores its financial discipline and growth potential.

Why Investors Are Bullish

The combination of strong Q1 results, strategic acquisitions, and capacity expansion has bolstered investor confidence in Tilaknagar Industries. The company’s ability to double its net profit and improve margins highlights its operational strength, while its entry into the whisky market and planned capacity upgrades signal robust growth prospects. As the Indian liquor market continues to expand, driven by rising disposable incomes and changing consumer preferences, Tilaknagar is well-positioned to capitalize on these trends.

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